Tech
Caroline Ellison sentenced to two years in prison for FTX fraud
Caroline Ellison, the former CEO of FTX affiliate Alameda Research, was sentenced to two years in prison on Tuesday.
Ellison pled guilty to conspiring with FTX’s Sam Bankman-Fried to steal $8 billion worth of customers’ funds, but she was an exceedingly cooperative witness, helping law enforcement to investigate the massive fraud scheme. Her two-year sentence stands in stark contrast to Bankman-Fried’s 25-year sentence.
Though he is currently in prison, Bankman-Fried has continued to appeal his sentence. Unlike Ellison, the former FTX founder pled not guilty. Two other former FTX executives, Gary Wang and Nishad Singh, await sentencing.
Tech
After TikTok, Snap settles social media addiction case
Snap is the latest big tech company to settle a lawsuit that claimed social media platforms are harmful to children and young adults. The company has reached a “tentative” agreement in a case that was set to go to trial later this month.
TikTok recently settled its portion of the case with the plaintiff, known by the initials “R.K.C.,” ahead of a jury trial that starts next week in Los Angeles.
YouTube has also reached a deal, leaving Meta as the only remaining defendant.
Meta has lost similar child safety lawsuits focused on social media, including one in New Mexico earlier this year, which marked its first courtroom defeat over the matter. In March, a Los Angeles jury also handed the social media giant, along with Google, another defeat, and awarded the defendant in that case, who went by “K.G.M,” or Kaley, $6 million in damages.
The precedents set by these cases are encouraging a wave of lawsuits against social media platforms over their purported harms, including their addictive nature and algorithms that negatively impact children and teens’ mental health. The results of these lawsuits could see the companies reshaping their platforms with more robust child safety measures, parental controls, and other design choices that could help them avoid future litigation.
The terms of Snap’s agreement weren’t disclosed, but Bloomberg reports that Snap confirmed the settlement has been achieved.
Snap did not immediately return a request for comment.
Tech
Light made a flip phone. It’s colorful and it’s cheap.
Kaiwei Tang helped create the iconic Motorola Razr over 20 years ago. Now, 10 years into building Light, the startup behind the minimalist smartphone alternative Light Phone, he’s as surprised as anyone that his customers are begging for a flip phone.
“We’ve been interviewing young people that use flip phones for a few years,” Tang told TechCrunch, describing a pattern his team kept running into: Gen Z users love their flip phones but say the build quality is bad. “They’re describing the flip phones in negative language, but they stick with it, and they feel proud.”
So Tang and co-founder Joe Hollier had an idea. What if Light took the fast, custom software from its last three touch screen phones and put it into a flip phone? That’s how they decided to build the Light Flip, the most affordable device that Light has ever released.
“What we’re doing is offering the same Light Phone experience, the same Light Phone OS with our SDK developer program, all of the tools we already have today: alarm, calculator, calendar…” Hollier told TechCrunch. “It’s kind of the exact same experience, just one is fully tactile, no touch screen, and [the other] one is a complete touch screen experience.”

Pricing has always been Light’s hardest problem as a small hardware startup. How do you sell a “less” phone for a price people will actually pay, when the whole pitch is fewer features? Its previous release, the unlocked Light Phone III, retails at $799. But the Light Flip brings the cost down to $299 by dropping a touch screen, NFC reader, and selfie camera. The Light Flip is also made of plastic, rather than sturdier aluminum, but that means that for the first time, Light can offer one of its phones in a range of colors: black, red, yellow, pink, navy blue, and light grey.
“I thought I was fully QWERTY, but I was having fun with the T9 predictive texting [the old-school method of typing multiple letters per number], so I can see myself going flip phone also for the colors,” Hollier said. “Just having a yellow phone gets me so jazzed.”
Beyond the sticker price, Light is also testing a financing play. It recently piloted phone contracts with Andrew Yang’s anti-doomscrolling carrier Noble Mobile. With Light’s own service plan, customers can get the Light Flip for a two-year contract at $39 per month; the Light Phone III will be available for $59 per month over the same time frame.
The Light Flip only has a 2.8″ OLED screen on the inside and no screen on the outside, as requested by users. There will be a small light on the front of the phone, however, so that you can see if you have notifications without flipping open the device. With 5G and 4GLTE connectivity, the Light Flip can download podcasts online and play music that you upload to your phone, which you can listen to via either a 3.5mm headphone jack or Bluetooth headphones. It charges via USB-C, works with both eSIM and physical Nano SIM cards, and includes a 12-megapixel camera on the back.

The Light Flip is expected to ship in April 2027, which Light acknowledges is a long lead time. To keep preorder customers engaged (and, practically, to keep them from canceling before it ships), the company is launching a new “Flip Your Life” program, including bi-weekly newsletters to help people prepare for the lifestyle adjustment of ditching a smartphone. It’s a community-building move as much as a marketing one. By building a support network around the phone, Light hopes that the transition to using its products will be less jarring and that it sticks.
While Light believes that its phones can help people reclaim the time they may regret spending on mindless scrolling, the founders acknowledge that it’s not easy to quit smartphones cold turkey. It’s hard to sacrifice the convenience of instant internet access, Apple Pay, music streaming, and convenient communication tools like WhatsApp and iMessage, and it’s easier for the flip phone-curious to make this transition when they’re not going through it alone.
“I think something that’s so inspiring about this movement is it’s not coming from a place of just anger and hatred… It’s a movement of optimism, as well as skepticism,” Hollier said. “I think that’s what we’ve always tried to do with Light. We’re anti big tech in all these ways, but we’re always trying to show that the other side of life can be really simple and beautiful.”
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Tech
Can an Apple lawsuit derail OpenAI’s hardware plans?
Apple recently filed a trade secrets lawsuit against OpenAI, accusing the AI company of a pattern of misconduct aimed at getting current and former Apple employees to share confidential information. (In response, OpenAI said it is “not aware of any evidence that this complaint has merit.”)
On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I debated whether this lawsuit will cast a shadow over OpenAI’s much-discussed plans to get into the hardware business (starting with a mobile smart speaker) and go public.
“Even setting aside whether or not the court grants any kind of injunctive relief or any kind of restraining order over what OpenAI is doing, it just naturally can lead to that sort of situation where it’s going to cause some delays in what OpenAI is working on,” Sean suggested. “Which I’m sure was probably part of the reasoning behind Apple doing this. They don’t do this stuff willy nilly.”
With all those plans on the line, will OpenAI try to settle this as quickly as possible, or did it learn from its recent courtroom victory against Elon Musk that it can endure the cost and embarrassment of a trial? Kirsten, at least, predicts the latter.
Keep reading for a preview of our conversation, edited for length and clarity.
Kirsten: Sean, how do you feel about Sam Altman listening to you with a little device maybe in your pocket?
Sean: I’m good. Maybe that’s predictable, but I’m good. No thanks.
We’ll get into it, I’m sure, but this is allegedly the first product that OpenAI has been working on in its hardware division with Jony Ive and company. They’ve been really coy ever since that weird video they put out last year of them sitting at that coffee shop or bar in San Francisco and sort of talking very vaguely about hardware and legacy devices, meaning laptops and phones. And so if this is the direction they’re headed in, all power to people who want to have somebody like that always listening to them. This is not going to be for me.
Anthony: Part of what we have to remember about those kinds of devices is also that, depending on how mobile it is, it’s not just listening to you, it’s listening to the people around you. I might be fine with it — I’m not fine with it, but let’s say I was — but then if we met up in-person at Disrupt, then suddenly it might be listening to all of us.
There are all kinds of social norms that are going to have to be renegotiated if these things become widespread. I think we should make fun of and criticize people who record other people without consent.
Kirsten: Well, I bring up the device that has been speculated about for a really long time, and we’ll see what it really ends up being once it’s officially introduced, but it’s important in the context of this lawsuit that Apple filed last Friday.
It was the biggest news of the week, certainly, and this is a trade secret lawsuit. It has some pretty wild allegations and we should very much emphasize these are allegations that have been filed in a complaint by Apple. But what it is accusing OpenAI of is a pattern of misconduct at the highest levels, specifically directed towards OpenAI employees who used to work at Apple. And in fact they’ve named the chief hardware officer Tang Tan in this lawsuit.
This is all important because Apple is accusing OpenAI of essentially stealing their trade secrets, but in the context of that, this could be then used for a competing hardware product. I’m wondering if maybe we don’t get into whether this lawsuit has merits, because we haven’t gone through full discovery, but what are your initial impressions of the lawsuit aside from the fact that wow, this is going to be entertaining?
Sean: Two things. One, this is a pretty big risk potentially to whatever it is OpenAI is working on. Even setting aside whether or not the court grants any kind of injunctive relief or any kind of restraining order over what OpenAI is doing, it just naturally can lead to that sort of situation where it’s going to cause some delays in what OpenAI is working on, which I’m sure was probably part of the reasoning behind Apple doing this. They don’t do this stuff willy nilly.
The other is that we think that OpenAI is — we know that they’ve filed confidentially for an IPO. We think it might happen as early as the end of this year, or early next year, if you believe Sam Altman’s cautious language around the IPO. And this just raises a whole bunch of questions around that because, on the one hand, we think their business right now is probably overwhelmingly the software; they’re not really factoring in any hardware business into that picture at the moment.
They’re about to go to the markets and they’re going to be pitching bankers and investors on where they think their addressable market should be, and if they have a big amount of that pegged to a potential hardware division and hardware products, this could be a huge risk to that and changes a lot of the calculus of sort of how the IPO gets priced. So that’s where my head’s at.
Anthony: One [allegation] that I assume that Apple must have pretty solid numbers on is, they said more than 400 Apple employees now work at OpenAI. Granted, both of them are very large companies with many thousands or tens of thousands of employees. So as a percentage, it’s not necessarily huge. But that seems like a lot of people and a pretty serious talent drain.
And the other thing I’m wondering is related to Sean’s point. With the context of the potential IPO, how much damage did OpenAI ultimately take from a marketing and brand perspective from the trial it already went through? That it seemed to basically win, but there was a lot of not-terrible-but-kind-of-embarrassing dirty laundry that came out in the testimony. To what extent are they just like, “We do not want to go through that again”? Or did they take the lesson of, “Hey, we went through it and we survived and we’ll be okay if we have to do another trial with Apple”?
Kirsten: I fully predict the latter, by the way.
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